Apple:Geeks :: Coach:Girls

Tagged as: , , , Jul 22

Well first off, it’s not totally all-inclusive and definitive to say that only geeks want Apple computers or that all girls want coach purses. But you know what, for now that will be the title.

Secondly I took this idea from those old SAT analogy questions. Sick as it may be, I rather enjoyed the SAT. It was challenging without being impossible. Plus every time I took it (I only took it once “for real”), it was different. Whether that meant different passages to read and answer from or different math questions, I enjoyed that it was a new challenge that I hadn’t exactly encountered yet.

Anyways, those were definitely unimportant asides. I really want to just say that I think that Apple is keeping their prices artificially high in order to appeal to a certain part of the market. They want to be the ultimate that everyone desires. They want to be what Coach purses are to girls. Okay okay you can choose any of the myriad of popular expensive brands of purses, but I just needed an example. And that seems to be a popular one nowadays.

Coach is a company that produces leather goods and sells them on a very high profit margin. Economists have hypothesized that they are selling “affordable luxury” that is both recognizable as a luxury product while also being reasonably within the budget of many people. That is to say that it’s thought to be “nice” and it’s also well-known to everyone.

Apple is the same thing to geeks (and artists and movie makers and perhaps even all computer users).

Despite your opinions, I’d say that you must admit that Apple has a well thought-out business model. They customize software (including the operating system) to work very well on their devices. I’m mainly speaking about their computer here rather than their other devices, but I suppose that it holds for those as well. So they are determined to do something and do it well. They will sell very few product lines, and they are not determined to be able to support everything under the sun like Microsoft is with their Windows product. Have you ever thought about how much easier that makes their job? They know exactly what they must do while Microsoft has to build a product that is so good that it can conquer “the unknown.” If Apple were unable to get something to work just right with their goal, they could just say “forget it” and be done with it.

And upon this business model, Apple has kept their prices high. They sell good products, but they charge a premium for them as well. And seeing as how they have increased their market share from 3.2% to 7.6% in 3 years (reference), something is working for them.

Personally, I’ve been keeping an eye on the Macbook Pro for the entire time that it’s been out (and probably even as soon as rumors started circulating that it was going to be produced). I was eager to see what Apple was going to do with that platform. I knew that there would be problems with such new technology (and I was proved correct with the plethora of reports from the first few generations but I digress). I do intend to still buy one. But just for curiosity’s sake I recently priced laptops from both Dell and Lenovo. I was able to get hardware that was as good (or better) and at cheaper prices. It was fairly dramatic to say the least.

What does that mean? It means that Apple laptops are also “affordable luxury.” It means that you don’t need one. You could get a very usable functioning laptop for thousands less. Or similarly you could use the same amount of money and get a laptop with more cutting edge components. But because Apple keeps their prices high, people will always hold them on a pedestal. They will be the ideal instead of just a choice. And that works out just fine for Apple. But just like I don’t understand the whole deal with buying fancy purses (saying “it’s quality” just doesn’t cut it all of the time), I’m not sure if I’m totally comfortable with Apple all of the time. I think that on a case by case basis I would advise people to honestly figure out what they need. And i think that many times that will lead to the conclusion that Apple is not the place for them. Yeah, if I were a girl I might just be that one with the homemade bag on her shoulder.

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7 Comments »

Comment by Ms. Q
Jul 23, 07 at 10:32 AM

Great comparison between 2 disparate products! There is something to be said about “affordable luxury” and marketing. The people I know who have Apple computers love them and they did do a lot of research and such before purchasing them.

I think there is something to be said about paying for quality and I am willing to spend a bit more for quality, depending on the product. I purchased a conservative Japanese car with a good repair history. It wasn’t cheap, it wasn’t expensive, it was “good value.”

I had to laugh at girls wanting Coach bags. I’m no style queen but I think that Coach bags aren’t “hot” these days. I keep hearing about “Kate Spade” but Coach seems to be hot with the Chinese crowd and I think it’s because they are well made, conservative in style (so they will look good for many years) and while expensive, their prices aren’t astronomical. I think.

I wanted a Coach bag, too. At the time, the bag I wanted was $375!! That is too freakin’ much for a freakin’ leather purse. I mean, seriously. BUT, I was in Boston on vacation (this was dang, maybe 9 years ago?) and there was this stall at one of the T stations selling handbag knockoffs and they had an exact replica of the Coach bag I wanted for $99!! I mean, the replica was PERFECT. I think it was probably made for Coach in the first place because a few years later one of the brass screws or something fell out and I went to a Coach store, made up some story and got a replacement part. No, I didn’t bring in the bag. The part fit perfectly.

Anyway, I used that bag for several years and got tired of the style but guess what, it’s still in fantastic condition.

 
Comment by Derek
Jul 23, 07 at 09:49 PM

@Ms. Q
Thanks for your comment!

I would agree that quality does deserve a premium (I am buying that Apple laptop after all), but I just thought that the whole idea was worthy of some comments. Sometimes it’s worth it, and sometimes it’s not. I just don’t want people to ignorantly want particular things because of tricky marketing.

As for whether Coach bags are “in” right now, I guess I don’t really know. I know about the people around me, and it seems like they like them. I guess that’s another point that fancy, higher-priced items can always be “in” somehow.

Wow $99 for a bag that wasn’t real? I guess if it’s actually made well then that might be something, but that definitely would cause me to do a double take. Ah well as long as it turned out well for you!

 
Comment by Ms. Q
Jul 24, 07 at 07:59 AM

I think the bag is “real” - it just doesn’t have the label on it. I compared it to a real one, no difference. Someone knew someone who works in the factory they make them in is my guess. Also, if you buy leather goods, $99 wasn’t a bad price at all, even for that time.

 
Comment by Derek
Jul 24, 07 at 09:37 AM

@Ms. Q
You know, I’ve heard stories of factory workers smuggling out the leather with the print on it because it’s worth so much. Who knows how true those stories are, but it would make sense since the workers’ wages would probably be less than a bag for an entire day’s work.

That makes sense that $99 is not too much for a leather good considering how much other leather goods (i.e. leather jackets) can cost.

 
Comment by Jill
Jul 24, 07 at 08:25 PM

Yeah, that brand name thing can sometimes be a tough call. I have no desire for a brand name in and of itself, but good quality is worth it. I do happen to need a heavy duty purse, as it happens, but have never lusted after a coach…

I’ve always been kind of interested in the apple just because of it’s reputation for the artistic stuff…but I tend to muddle through okay with a compaq as it is.

 
Comment by tiff
Sep 25, 07 at 12:49 PM

you WOULD enjoy the SAT.

 
Comment by Derek
Sep 25, 07 at 01:37 PM

@tiff
Haha you’re right, I would. Don’t you? Doesn’t everyone??

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